Sales of gift cards are booming. Last year, retailers rang up
more than $36 billion worth-and in December alone, Starbucks
customers spent a whopping $37.5 million on them.

These plastic cards can help you make money in a variety of
ways. Consider breakage-the unredeemed value on the cards. Breakage
estimates range from 5 to 10 percent, and at least 15 states have
successfully lobbied state regulators to ensure that unclaimed
dollars from gift cards are specifically exempt from abandoned
property laws, allowing you to keep the remaining dollars. And even
if customers do end up using their cards, remaining balances are
carried over-encouraging incremental trips to your store.

You can also sell other retailers' gift cards and negotiate
a percentage of the sale. Safeway stores, for example, sell more
than 23 different gift cards, ranging from AMC Theatres to Best Buy
to Marriott Hotels.

Other retailers have created limited-edition collectible gift
cards. This practice allows you to collect the money upfront with
virtually no chance of redemption. And gift cards work well as
impulse items; displaying them wrapped in birthday paper, for
example, acts as a reminder for gift-giving.

GiftCard Technologies (www.giftcardtech.com) sells cards for less than
$1 each-giving you a low-cost way to build mind share and market
share.